Correlation Between Ivanhoe Energy and I-80 Gold
Can any of the company-specific risk be diversified away by investing in both Ivanhoe Energy and I-80 Gold at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ivanhoe Energy and I-80 Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ivanhoe Energy and i 80 Gold Corp, you can compare the effects of market volatilities on Ivanhoe Energy and I-80 Gold and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ivanhoe Energy with a short position of I-80 Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ivanhoe Energy and I-80 Gold.
Diversification Opportunities for Ivanhoe Energy and I-80 Gold
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ivanhoe and I-80 is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ivanhoe Energy and i 80 Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on i 80 Gold and Ivanhoe Energy is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ivanhoe Energy are associated (or correlated) with I-80 Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of i 80 Gold has no effect on the direction of Ivanhoe Energy i.e., Ivanhoe Energy and I-80 Gold go up and down completely randomly.
Pair Corralation between Ivanhoe Energy and I-80 Gold
Assuming the 90 days horizon Ivanhoe Energy is expected to under-perform the I-80 Gold. But the stock apears to be less risky and, when comparing its historical volatility, Ivanhoe Energy is 1.36 times less risky than I-80 Gold. The stock trades about -0.06 of its potential returns per unit of risk. The i 80 Gold Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 69.00 in i 80 Gold Corp on December 28, 2024 and sell it today you would earn a total of 19.00 from holding i 80 Gold Corp or generate 27.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ivanhoe Energy vs. i 80 Gold Corp
Performance |
Timeline |
Ivanhoe Energy |
i 80 Gold |
Ivanhoe Energy and I-80 Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ivanhoe Energy and I-80 Gold
The main advantage of trading using opposite Ivanhoe Energy and I-80 Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivanhoe Energy position performs unexpectedly, I-80 Gold can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in I-80 Gold will offset losses from the drop in I-80 Gold's long position.Ivanhoe Energy vs. Questerre Energy | Ivanhoe Energy vs. Ivanhoe Mines | Ivanhoe Energy vs. Eastern Platinum Limited |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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